Payments Trends You Should Know About in 2024

Blog 2022

The world is only growing more digital, and that’s no different in the payments space.

What used to be a system predicated on paper currency is seeing less and less cash all the time. In fact, actual physical, tangible payment methods as a whole are on the decline as consumers continue to convert to digital wallets in large numbers.

That’s the high-altitude perspective. As we get closer to ground level, we can make out the more granular, specific changes afoot. These are important tell-tale signs of not just where payments are but where they’re headed. And that’s important to know because it can help you better position yourself to capitalize on those changes.

Walter Greaney, Vice President of Payment Platforms for Payroc, has identified several key trends in payment processing that you need to know about for 2024.

Rise of Omnicommerce

COVID-19 made countless indelible impacts on our world and very way of life. We can still observe these impacts today — like every time we scan a QR code or place a grocery delivery order, for example.

The pandemic accelerated the rise of omnicommerce. Consumers now expect and demand a holistic, personalized experience in every interaction. They expect and demand it regardless of channel, too.

That means payment processes must feel seamless and customized, both online and offline.

“Consumers expect to be able to walk into a business and pay the same way they do online, in the way that’s easy for them,” Greaney said. “They expect the same thing in the digital space, too.

“Businesses need an all-in-one payment platform that doesn’t just offer one solution but has multiple solutions.”

Preference for an All-In-One Platform

Payroc has taken that jack-of-all-trades approach and run with it. Our platform delivers tailored payment processing for specific needs, making use of a wide variety of offerings.

“By positioning ourselves to be an all-in-one payments platform, we can offer multiple solutions,” Greaney said. “From our own offerings, which we’ve invested a ton into developing and building out, to our third-party vendors, with whom we’ve solidified and strengthened our relationships.”

And that’s important because we’ve heard the message loud and clear. Many — ISVs, especially — want that all-in-one solution. The shifting priorities ushered in this day and age of omnicommerce necessitate nimble, multifaceted resources.

“Payroc has adapted to that,” Greaney said. “For example, a merchant can come to us looking to do X, Y, and Z, and we can make that happen for them, whether it’s in a card-not-present environment or otherwise.

“We’re able to offer those omnichannel and omnicommerce experiences right out of the box.”

Payments as a Service

Another pandemic-influenced change that’s taking over is the shift toward payments as a service. Whether it’s retailers or financial institutions or anything in between, we’ve observed the use of digital payments proliferating at an exponential rate over the last few years, which has created even greater demand for improved payment processes.

Payroc empowers you to meet consumers where they are by offering them efficient, reliable payment services. Best of all, this saves businesses the time and expense of developing those kinds of services internally.

The absolute necessity of superlative payment processing is simply a fact of life in a post-pandemic world. But it’s also led to further transformation. In Payroc’s case, it has meant innovating beyond just payments.

“Payroc isn’t just a payment processing company. We’ve become a technology company,” Greaney said. “Different software solutions can embed payments in their offerings without having to think about it. And what that’s done is enabled all of these different software providers to offer to different point-of-sale companies, which then trickles down to merchants and consumers.”

One key to Payroc’s transformation is its APIs. When a client requests an upgrade or new feature to the platform, Payroc brings that to fruition and then makes it available across the entire offering. That means when an ISV asks for something new, it’ll be added and available across the board.

BYOD (Bring Your Own Device)

Another trend that figures to continue its ascent in 2024 is the use of personal devices for payment purposes.

Big retailers and financial institutions will always need traditional payment terminals. But the Bring Your Own Device (BYOD) movement is fomenting on the smaller-scale — think food trucks, art vendors, and other side-hustlers. Greaney said to expect to see even more of that in the gig economy in 2024. Payroc does, which is why we’re releasing our very own app in January.

“Software providers are starting to embed the ability to accept payments on personal devices without the need to go out and purchase other hardware,” Greaney said. “Smartphones are now payments devices, and Payroc is really well-positioned to continue our platform’s growth across the board as a technology firm.”

Other Trends for 2024 and Beyond

Some Payments Processors Demand Exclusivity

At Payroc, we’re aware of competitors who don’t just want to work with businesses — they want to be the only firm their clients work with. That’s unfortunate because people don’t want to do business that way.

But don’t worry. Payroc is here to help you with your needs, no matter how great or small, whether they’re singular or multifaceted.

“Some of our competitors are putting up walls around their kingdoms and saying, ‘It’s all or nothing, take it or leave it,’” Greaney said. “Payroc is swimming against the tide here. You want to process but have your paper and your account through a different offering? No problem, we can still service you as a technology platform.”

Emergence of AI

Artificial intelligence is everywhere. It seems like you can’t read an article or watch a newscast without hearing it mentioned. Its applications are seemingly endless, as is its potential.

That’s true in the payments space, too.

Greaney said to expect to see AI leveraged in processing, whether it’s upfront on the acceptance side, or on the backend with risk monitoring and reporting/insights. Payroc is working to implement AI as part of its offerings to create an even more efficient, intuitive, and helpful platform.

Stay Current (and Ahead) With Payroc

In 2024, you can expect the digital transformation to make further waves in the payments space.

Omnicommerce will continue to drive demand for holistic, seamless experiences regardless of how or where payment is made. The as-a-service movement figures to pick up further steam, which will increase expectations for an all-in-one payments solution that’s as easy as plug and play. And BYOD is likely to capture more market share among small businesses and entrepreneurs thanks to its convenience and cost-effectiveness.

Some payment processors will become more difficult to work with in 2024, demanding your complete business or otherwise refusing to work with you. And you can bet AI will take a more prominent role.

That’s why it makes the most sense to work with a partner that won’t give you an all-or-nothing ultimatum for your business, that’s innovating ways to leverage AI in payments to your benefit, and that’s more than just a payments platform.

Payroc can help you keep up and get ahead in these fast-changing, ever-evolving times. Get started now.